This morning, at the start of the week’s first session, Gold dropped 33 dollars from the 4077 area to 4043$/ounce.
The main reason comes from the fact that Donald Trump’s “28-point peace plan” regarding the Russia–Ukraine issue is making good progress.
In addition, there is no important economic data today, so the market is only reacting slightly to temporary news.
Besides that, Gold is also moving sideways within the wide range of 402x – 4100 and is waiting for a sudden push from the market to break out of this sideways range and form a new trend toward the end of the year.
This decisive push will likely come from the PCE data in two days, which will determine whether the FED should cut interest rates or keep them unchanged to address the inflation issue that needs to be controlled.
Technical Analysis:
In the short term, Gold continues to move within a narrowing pattern and tightening range.
The PCE data is likely to be a strong enough catalyst to break the sideways range and form a new trend.
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